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Old 09-14-2016, 06:49 PM
 
150 posts, read 111,027 times
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The Federal Reserve was raised by .25%. The reserve in the last few years has been the lowest it's been in history. They lower it when the economy is bad, then it's raised when the economy is doing better.
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Old 09-16-2016, 12:58 AM
 
731 posts, read 399,195 times
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Quote:
Originally Posted by BloominOnion View Post
The Federal Reserve was raised by .25%. The reserve in the last few years has been the lowest it's been in history. They lower it when the economy is bad, then it's raised when the economy is doing better.
After QE1, QE2, Q3 and ZIRP for 8 years why is FED not raising rates every month? Where is this so called recovery?
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Old 09-16-2016, 05:48 AM
 
4,727 posts, read 2,259,491 times
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Quote:
Originally Posted by C2BP View Post
After QE1, QE2, Q3 and ZIRP for 8 years why is FED not raising rates every month? Where is this so called recovery?
A recovery is an improvement from a recession. It is entirely possible to be undergoing a recovery while still not having an economy at a level considered stable/healthy enough to raise rates.

Not saying I agree with rate decisions, just saying your all or nothing logic is disingenuous.
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Old 09-16-2016, 09:48 AM
 
731 posts, read 399,195 times
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Originally Posted by lieqiang View Post
A recovery is an improvement from a recession. It is entirely possible to be undergoing a recovery while still not having an economy at a level considered stable/healthy enough to raise rates.

Not saying I agree with rate decisions, just saying your all or nothing logic is disingenuous.
So where is this recovery? How can you have recovery with low interest rates? Low interest rates prevent recovey from happening. The Fed has spent trillions and trillions of dollars and has nothing to show for. All this money spent for what, to inflate housing and the stock markets, to create another asset bubbles.

This is the worst recovery in history, why? Because it is NOT a real recovery, it is a scam!!!!! After 8 years of ZIRP and QE1, QE2 and QE3 what kind of recovey are we talking about here? What kind of recovery lasts so long? How can we still talk about recovery after 8 years? How come we can't raise rates every month? We should be raising rates every month, we can't raise 0.25 points in a year.

There is NO RECOVERY lieqiang and it will NEVER be one unless we go thru deflation and depression first. Keep dreaming, keep praying for a miracle, it will never come. Just remember what I told you. It's imposible to grow our economy with so much debt that we have. Unless we destroy this debt and go thru tough times, go thru dark forest of deflation, experience some real pain, real economic growth will never happen, NEVER!!!
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Old 09-16-2016, 10:22 AM
 
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The only "miracle" needed is election of a Congress that will support expansionary fiscal policy. Paralysis due to fear of spending and debt is simply irrational.
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Old 09-16-2016, 09:30 PM
 
Location: Greater Houston
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Recession will happen after the election, no matter who is elected! This Christmas shopping season may be the worst ever recorded.
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Old 09-17-2016, 07:52 AM
 
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Originally Posted by C2BP View Post
So where is this recovery? How can you have recovery with low interest rates?
You are interjecting an opinion you hold (low interest rates = bad) as a disqualifier of existence of a recovery, despite various other measures having shown evidence of a recovery. What you're doing is holding a conclusion and attempting to fight off or ignore any information that is contrary to it.


Quote:
Originally Posted by C2BP View Post
This is the worst recovery in history, why?
It might be (I have no idea) but that doesn't mean there is no recovery. The worst recovery is still a recovery.


Quote:
Originally Posted by C2BP View Post
It's imposible to grow our economy with so much debt that we have.
This claim is directly refuted by GDP data, the economy is indeed growing. Maybe you don't know what the word "impossible" means?

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Old 09-17-2016, 08:06 AM
 
4,229 posts, read 1,906,546 times
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Originally Posted by KerrTown View Post
Recession will happen after the election, no matter who is elected! This Christmas shopping season may be the worst ever recorded.
Hmmm. How do you counter the proposition that this Christmas shopping season may be the best one ever recorded?
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Old 06-18-2018, 09:07 PM
 
4,727 posts, read 2,259,491 times
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Quote:
Originally Posted by C2BP View Post
Why does the FED feel it needs to raise interest rates in September? I think they feel that the global recession will have another major dip down in the next year, and, unless they move interest rates up, they will not be able to lower rates when it comes time to fight the recession. Of course, I KNOW that lowering interest rates does not end a recession. We have been lowering rates for nearly two decades, and we are still in near-recession. The global economy has not recovered. Why? Because the economic growth -call it the Business Cycle if you wish -period ended in 2001. The Business Cycle won't begin again, no matter what anyone does, until DEFLATION is allowed to do it's job.

The economy is NOT recovering. If I were the President of the US I would find a FED chair with the courage to raise rates no matter what it did to stock markets and property markets. We have too much debt. We need to destroy debt in order to be able to have real economic growth. Of course the FED has been telling Americans and citizens of the world that it would protect investors. They have been protecting investors since the first bubble burst back in 2001. At that point we needed to begin discouraging debt. Growth was over. Taking out new loans when the Business Cycle had ended was a catastrophe-in-the-making. Higher interest rates protect the public from bad debt decisions, make it harder to get loans, harder to pursue loans. When there is no expansion, there should be no new loans - loans at the end of the Business Cycle are doomed to fail. But the FED decided it would just lie about things and encourage more debt and push down interest rates to encourage more loans and to eventually force people into investments in risky assets because they would have no alternative. With rates at zero, or even less than zero, cash was not an alternative. People would have to risk their savings by investing in risky assets. The FED seemed to be assuring us all that they had our back, they would not lets housing collapse, they would not lets stocks collapse. They did let oil collapse, and the commodities bubble, by raising rates, supporting the US Dollar.

Instead of raising rates in 2001, we did the opposite, we lowered rates, took on more debt, and are still taking on more debt. You can argue that debt doesn't matter, as long as it is manageable. But look where we are now. We are having to fix interest rates below zero to make our debt manageable, for the first time in human existence. This means it is NOT manageable.) If the FED decides to finally protect the Dollar - which it should have begun doing in 2001 - then we will have all those things the FED has been trying to avoid: deflation, depression, collapse of back promises, international tension, protectionism, world war, and austerity, austerity, austerity.

Strong Dollar will collapse the 'Wealth Effect' the FED has been protecting with great vigor since 2001. It will collapse the Housing Market, it will collapse the stock Markets, it will collapse the commodities Market that has been rallying since 2015, after a strong Dollar almost killed oil and gold and silver and industrial metals from 2012-2015. A strong Dollar is strong medicine. It will cure us but it also might kills us. Strong Dollar will show everyone that this so called recovery was a scam and one big lie and illusion!!!!
Save some time we can just read basically exact same thread from before.
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